PHH Corp. unveiled its 4Q earnings this morning, revealing that it had to reduce the asset value of its mortgage servicing rights by $57 million during the period "due to prepayments and recurring cash flows and $10 million of credit-related charges, which was comprised of foreclosure-related charges of $11 million partially offset by a reduction of reinsurance-related charges of $1 million." The writedown isn't all that surprising given the nature of interest rates these days, but as we pointed out a month ago, many of the 'mega banks' are writing up the value of their MSRs. Under new CEO Jerry Selitto, PHH is in the midst of reengineering how it conducts business in an effort to save up to $120 million annually...
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